BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The FBM KLCI continues to lose ground after it closed lower for a fourth consecutive day amid sustained selling pressure on some of the index-linked stocks.
There were few domestic and regional positives to sustain the intraday gains which exerted more selling pressure on Bursa Malaysia stocks.
Consequently, most stocks ended on a negative note with losing stocks still topping gainers for the day.
There appears to be little solace for market players as conditions are still insipid and the key index is likely to remain on its on-going slide over the near-term.
This follows its inability to sustain follow through buying last week and the resumption of profit taking by foreign funds that have caused fresh wariness over the FBM KLCI’s direction.
There are also fewer compelling buying opportunities that would leave the key index to drift further. Under the prevailing environment, the downside bias remains with the 1,600 level again under threat.
In between, there is an interim support at the 1,605 level while below 1,600, the next support is at the 1,595 level which is also the critical 200-day moving average line. On the other hand, the resistances are at 1,615 points and at the 1,620 level respectively
Malacca Securities Research
The FBM KLCI ended flat as selling pressure persisted on selected index heavyweight although banking and other heavyweight stocks were mostly positive ahead of their respective earnings releases.
Meanwhile, a Trump 2.0-induced rally on Wall Street lost steam as profit-taking activities emerged as most positive catalysts such as (i) lower corporate tax rates; and (ii) higher tariffs on trade deficit nations have largely been priced in.
We believe the focus will shift back to the US earnings season. Market participants will also closely monitor key economic indicators, including the (i) consumer price index (CPI); producer price index (PPI); (iii) retail sales; and (iv) Malaysia’s 3Q 2024 GDP data.
In the commodities market, Brent crude traded flat after OPEC+ cut its forecast for global oil demand growth next year. Gold prices retreated further to US$2,598/oz as the US dollar gained momentum while the CPO price remains above RM5,000/metric tonne.
The FBM KLCI index closed lower towards the 1,608 level. Meanwhile, the technical readings on the key index were mixed with the MACD histogram having formed another positive bar but the RSI trended below 50.
The resistance is envisaged around 1,623-1,628 while the support is set at 1,588-1,593. – Nov 13, 2024
